If applicable, this amount is paid when the contract is executed and is paid to give the buyer a certain amount of days to back out at no penalty after the contract is signed. While this period is typically used by buyers to back out if any serious issues come up during inspection, it can be exercised for any reason. The amount is usually no less than $100 and the length of the period is proposed by the buyer. The option fee and option period are not required, but if the buyer requests the option, the check will be made out to the seller and is nonrefundable.